Securing scale through bankable projects
Scalable and financially sustainable projects that propel the transformative potential of Nature Based Solutions.
To deliver scale, Nature-based Solutions need substantial financial backing.
These cannot solely rely on donations or equity, it must encompass debt financing, whose interest in a sector at scale is the best evidence of its maturity.
Project bankability ultimately depends on the robustness of the contractual arrangements that secures a project. In that context, Arbreen draws a compelling parallel between renewable energy projects and Carbon Dioxide Removals.
Project finance, a well-established model for funding large-scale renewable energy power plants combines both equity and debt.
Project bankability for such projects largely relies on the power purchase agreement (PPA) and various other contractual arrangements.
These may include a long-term agreement to access land where the project will be built and operated, as well as, in some jurisdictions, an implementation agreement with the national government.
Arbreen envisions PPA-style offtakes and the suite of contractual arrangements synonymous with the renewable energy sector as the foundational model for Nature-based Carbon Dioxide Removals.
This strategic alignment sets the stage for robust, scalable and financially sustainable projects that propel the transformative potential of Nature Based Solutions.
